Because in any period of time and in any region the quantity of pollutants that can be absorbed by nature is fixed, the supply of "pollution rights" in a cap-and-trade system will be perfectly elastic.

Question

Quizplus · Accepted Answer

The quantity of pollutants that can be absorbed by nature is not fixed and can vary depending on the location, time of year, and other factors. Therefore, the supply of pollution rights in a cap-and-trade system will not be perfectly elastic.

Because in Any Period of Time and in Any Region